Janet Borgerson was in the nearby Hotel Malmaison when she heard “explosive cracks” she thought were holiday festivities before another series of “loud bangs”.

“Again, I thought the second round were firecrackers. I noticed hotel bar staff ushering people inside,” she told the Press Association.

Borgerson, who is visiting the city from America, said guests were later told they were “perfectly safe” and allowed to leave the hotel by an armed officer who seemed to indicate he was expecting a siege.

She said: “Because the shooting was directly behind the hotel block in which my room is, I did feel worried that someone with a larger weapon could be a threat.

“But the police were quickly on sight and after 45 minutes or so inside, and then briefed by police, they seemed to have the shooter isolated.

“To the police after a short time, this was definitely a ‘keep calm and carry on’ moment.”

We are currenly supporting @TVP_Oxford at a police incident in Paradise Square. One patient is currently being assessed & treated for non-life threatening injuries. Please follow @ThamesVP for further information.

A nearby resident, who did not want to be named, said he first heard two loud bangs early in the morning, but thought it was just Bank Holiday fireworks.

Later that day, he said he witnessed the start of the altercation between an armed man and the police, during which he heard around 20 shots exchanged.

He said: “I was frightened. I saw how easy he got down from his balcony, and I was terrified for a second, thinking he was going to come get me.

“He was shooting from the balcony and then he climbed down the balcony, he was in the gardens and police were kicking the back doors to other gardens trying to get him.

“Then he climbed back up and shot again. And that’s when they shot him in the head I think and in the chest.

“I could hear a female negotiator and an armed response man trying to get him to put his hands up, let go of the gun, keep his hands on show and things like that.”

Superintendent Joe Kidman, Oxford Local Policing Area Commander, said: “People in Oxford will notice an increased police presence in the area while officers are dealing with the incident, which is contained and taking place at a residential property.

“If you have any concerns or wish to raise anything please approach and speak to an officer or call the non-emergency number 101.”